S&P Global Mobility predicts strong monthly SAAR for October

S&P Global Mobility predicts strong monthly SAAR for October

On predicted volume of approximately 1.139 million units, US
auto sales in October will reach a seasonally adjusted annual rate
( SAAR) of 14.7 million systems, according to S&P Global Mobility
quotes. While this would mark the greatest regular monthly SAAR level
in eight months, the underlying dynamics of the marketplace stay in
flux.” Pockets of lorry inventory levels continue to enhance
quicker than expected from extraordinarily low levels and
bring welcome news on the supply side of the formula. However,
car consumers are likely feeling the pressure of current economic
headwinds,” according to Chris Hopson, Principal Analyst at
S&P Global Mobility. “While we continue to indicate
inventory levels as a significant consider stemming immediate-term
momentum in vehicle sales levels, the deteriorating economic
conditions are becoming more common.” Hindered by greater interest rate settings and lower levels of
tasks growth than formerly expected, consumers are expected to
retrench – thereby becoming a major input aspect to auto need
levels over the next 12-18 months. In its October 2022 United States Economics
update, S&P Global Market Intelligence group has actually revised
downward its forecast of genuine GDP development in 2023 from 0.9% to
-0.5%. The base forecast now consists of a mild recession beginning in
the 4th quarter of this year, with an anemic recovery taking
keep in the third quarter of next year.If theres a silver lining, the capacity for faster new-vehicle
inventory development ought to permit down pressure on car
rates and supply some clearance for car consumers ready to
test the market in 2023.

This post was released by S&P Global Mobility and not by S&P Global Ratings, which is an individually managed department of S&P Global.

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